Disney Is Immediately Taking Control Of Hulu in Comcast Deal


Meanwhile, Disney continues its quest for worldwide domination.

The Walt Disney Co. and Comcast Corp. have also agreed to fund Hulu's recent purchase of AT&T Inc.'s 9.5% interest in Hulu.

Comcast as early as January 2024 can require Disney to buy NBCUniversal's 33% interest in Hulu or be required to sell its stake for the fair market value at that future time.

That means NBCUniversal's current 33% stake in Hulu will make its way over to Disney in increments over the course of at least several years.

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Fair market value will be assessed at the time of sale, but Disney has guaranteed Comcast a minimum sale price of $27.5 billion for the remaining stake in Hulu. Don't expect Hulu to suddenly be stripped for parts by Disney though as the streaming service has value on its own. The deal sees Disney take full operational control of Hulu moving forward, as well as a shuffling in the licenses to NBCUniversal shows. And that's not to mention all the R-rated Fox films that can be put on Hulu instead of Disney+. But the real kicker comes in 2022, when NBCUniversal has the right to cancel most of its content-licensing agreements with Hulu, which means shows like Parks and Recreation could be departing to head to NBCUniversal's own streaming service. That NBC streaming service is expected to launch next year.

But that agreement expired in 2018, and Comcast has quickly handed over NBCUniversal's stake in the streaming service to Disney to presumably alleviate the telecommunication company's $100 billion in debt. NBCU can terminate most of its content license agreements with Hulu in three years' time, and in one year's time NBCUniversal will have the right to exhibit on its own OTT service certain content that it now licenses exclusively to Hulu in return for reducing the license fee payable by Hulu.

Only just begun, the streaming wars have...